Avadh Sugar & Energy Q4 net profit down 30%, board announces dividend of ₹10 per share

The company’s earnings before interest, tax, depreciation, and, amortisation (EBITDA) fell by 14% YoY to ₹122 crore during the quarter.

For the financial year 2024, the company’s net profit increased by 28% YoY to ₹128 crore. Revenue for the year dipped 4% YoY to ₹2,697 crore while EBITDA grew by 26.51% to ₹334 crore. EBITDA margins increased to 12.38% in FY24 compared to 9.4% in FY23.

The company said that production was impacted due to El Nino and Red Rot disease earlier in the year. Additionally, Uttar Pradesh’s hike in the state advisory prices (SAP) along with other regulatory constraints on ethanol diversion and sugar exports posed severe challenges, it said.

C.S Nopany, co-chairperson at Avadh Sugar & Energy said to achieve growth, the company has embarked on enhancing its sugarcane crushing capacity and improving energy efficiencies at its various units.

The firm stated that domestic sugar inventory is on the rise due to the government’s policy catalysing the shift from sugar to ethanol.

The board of directors has announced a dividend of ₹10 per share.

Avadh Sugar deals in sugar, spirits, and ethanol, co-generation, and other by-products arising out of the manufacturing process of sugar or resultant of any activity related to the sugar business. The company has four sugar mills at Hargaon, Seohara, New India Sugar Mills, Hata, and Rosa Sugar Works in Uttar Pradesh with a combined crushing capacity of 31,800 tonnes of cane crushed per day (TCD).

Shares of the company have lost 13.4% since the start of the year. The stock has risen over 15 in the past year.